Gratuity Calculator - Calculate Your Gratuity Amount
Calculate your gratuity amount based on last drawn salary and years of service. Know how much gratuity you'll receive on resignation or retirement.
Calculate Gratuity
Basic salary + Dearness Allowance
Minimum 5 years required for gratuity
Gratuity Amount
₹3,46,154
Basic + DA (Monthly)
₹60,000
Years Considered
10
How to Use This Gratuity Calculator
Using our Gratuity Calculator is simple and takes just a few seconds. Enter your values using the sliders or input fields above, and the results will update instantly — no need to click a calculate button.
All calculations are performed in your browser using standard financial formulas. Your data is never stored or transmitted to any server, ensuring complete privacy.
The results shown are estimates based on the inputs you provide. For precise figures, consult with your bank or financial advisor. Use this tool for quick comparisons, planning, and understanding how different variables affect your financial outcomes.
Formula & Explanation
Gratuity = (Last Drawn Basic + DA) × 15 × Years of Service / 26For employees covered under the Gratuity Act: Gratuity = (Basic + DA) × 15/26 × Years of service. The factor 15/26 represents 15 days' wages for each year of service (26 working days in a month). Service of 6+ months in the last year is rounded up. Maximum gratuity is ₹20 lakh (tax-free).
Calculation Examples
10 Years Service
Basic+DA ₹60,000, 10 years service
Gratuity: ₹3,46,154
20 Years Service
Basic+DA ₹80,000, 20 years service
Gratuity: ₹9,23,077
Benefits
- Know your gratuity entitlement
- Plan retirement finances
- Understand tax implications
- Verify employer calculations
- Negotiate CTC better
Use Cases
- Retirement planning
- Job change decision
- CTC understanding
- Tax planning
- Financial goal setting
About Gratuity Calculator
Our Gratuity Calculator helps employees estimate the gratuity amount they're entitled to under the Payment of Gratuity Act, 1972. Gratuity is a lump sum benefit paid by employers to employees who have completed at least 5 years of continuous service.
Frequently Asked Questions
Any employee who has completed 5 or more years of continuous service is eligible for gratuity. This applies to organizations with 10+ employees. In case of death or disability, the 5-year condition is waived.
Gratuity up to ₹20 lakh is tax-free for employees covered under the Payment of Gratuity Act. For government employees, the entire gratuity is tax-free. Any amount exceeding ₹20 lakh is taxable as per your income tax slab.
Yes, you're entitled to gratuity on resignation if you've completed 5+ years of continuous service. It doesn't matter whether you resign, retire, or are terminated — the 5-year rule is the only condition.
Gratuity is calculated on the last drawn Basic Salary + Dearness Allowance (DA) only. Other components like HRA, special allowance, bonuses are NOT included in the gratuity calculation.